Foreign Private equity (PE) investors bet big on India's real estate, land, retail drive H1 surge

Private equity (PE) investment inflows into India’s real estate sector surged to Rs. 20,566 crore (US$ 2.4 billion) in the first half of 2025, marking a 38% YoY increase, according to Savills India. Q2 2025 alone saw inflows of Rs. 13,710 crore (US$ 1.6 billion), doubling the previous quarter’s figures. Commercial office assets led with 31% of total investments, while alternative sectors like hospitality and student housing gained traction, accounting for 15% and 1% of quarterly shares, respectively. Land transactions became a prominent focus, representing 40% of PE investments in H1 2025, up significantly from 13% in 2024. Mumbai dominated land investments, attracting 70% of the total share. Foreign investors maintained their dominance, contributing 76% of overall PE inflows, underscoring strong global confidence in India’s dynamic real estate market.

Notable deals in Q2 2025 include Blackstone’s Rs. 3,239 crore (US$ 378 million) investment in South City Mall, Kolkata, the largest retail-focused deal of the quarter. Sumitomo and Brookfield also invested Rs. 2,528 crore (US$ 295 million) and Rs. 1,294 crore (US$ 151 million) respectively in assets under the Mumbai Metropolitan Region Development Authority (MMRDA), highlighting investor faith in Mumbai’s infrastructure-led growth. Managing Director of Capital Market Services at Savills India, Mr. Sumeet Bhatia, noted that the growing interest in diverse asset classes like retail, hospitality, and student housing reflects the maturity and resilience of India’s market despite global headwinds. This trend is expected to strengthen further as investors seek long-term value in the country’s opportunity-rich real estate sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.